Environmental Field Report (EFR) 2.0 Completion of EFR Cover Document For all Dispositions

Environmental Field Report (EFR) 2.0 Completion of EFR Cover Document For all Dispositions The cover document and the appropriate supplement form must be submitted for each surface disposition application. All blanks must either be filled in or N/A noted where applicable. New Revised Date Submitted 22/12/2011 Department Number PIL 030396 Site/Project Name: Alliance Pipeline Ltd. Bear Creek Meter Site (PIL 030396) Extension A. Communications 1. Applicant: Alliance Pipeline Ltd. 2. Company contact person for EFR: Kari Baker, Environmental Advisor Phone: (403) 517-6361 3. E-mail: Kari.Baker@alliancepipeline.com Cell Phone: (403) 510-5643 4. Company representative who conducted the onsite assessment for the EFR: Samantha MacKay and Daniel Jones, TERA Environmental Consultants 5. Phone: (403) 265-2885 Cell Phone: (n/a) n/a 6. Fax: (403) 266-6471 E-mail: smackay@teraenv.com / djones@teraenv.com 7. Date of on-site assessment: 14/12/2001 Note: SRD reserves the option to audit individual EFR s to ensure field visits have been conducted and information supplied is accurate. B. Surface Location LSD SE Sec 13 Twp 63 Rge 1 W6M To: LSD SE Sec 13 Twp 63 Rge 1 W6M 1. Construction is proposed under the following soil conditions (check the box that applies): Frozen Non-Frozen Other (If Other, explain) Alliance Pipeline Ltd. (Alliance) is proposing extend their existing meter site in SE 13-63-1 W6M (Pipeline Installation Lease [PIL] 030396) to accommodate installation of additional meter facilities. The new meter site will be 40 m x 40 m and located within a recent cut block immediately adjacent to Alliance s existing PIL. Pending regulatory approval, construction of the new meter site and associated piping will be conducted in early (February/March) 2012 under frozen soil conditions. Proposed construction date: 01/02/2012 June 17, 2008 2.0 Cover Document - EFR 1

2. Specify associated developments/dispositions that may be required as a result of this disposition. Power line Pipeline Compressor Metering Station Access Other N/A Installation of the new meter site will also require extension of the existing right-of-way to accommodate product transfer. Application for extension of the existing right-of-way (PLA 034339) will be submitted as a separate amendment. LSAS Review 3. A complete Land Status Automated System (LSAS) check must be made on the proposed area. Date LSAS search was completed: 13/12/2011 Reservation/Activity Number FMA 9900037 TPA 1509 Action required/identify conflicts/contact name and or comments Canadian Forest Products Ltd. Alliance will ensure there are no conflicts with the proposed project. Alfred Goodswimmer Alliance will provide the trapper with notification of the proposed project a. Within a Provincial Grazing Reserve? Yes No If Yes, complete the Provincial Grazing Reserve template and attach to the Environmental Field Report. (Refer to Appendix I in the instruction document.) b. Within the Chungo Access Management Area? Yes No If Yes, complete the Chungo Area template (located at the end of IL 2005-01 Annex to Chungo Creek Industrial Access Management Area Information Letter Alberta SRD - Lands - Forms and Publications - Managing Public Lands) and attach it to the Environmental Field Report. c. Within a FireSmart Community Zone? Yes No If Yes, contact Forest Protection Division for additional hazard reduction requirements. Alberta SRD - Wildfires - FireSmart - Information & Projects d. Follow the Bear Smart program to reduce bear-human conflicts and increase public stewardship of black and grizzly bears in Alberta by providing strategies, information and education materials to its staff and contractors. 4. Are Permanent/Research Sample Plots/Rangeland Benchmarks located within 100 m of the boundary of the lands under application? Yes No If Yes, indicate the legal land description and GPS coordinates for each plot/benchmark in relation to the disposition boundary (degree, decimal, minutes). Reservation No. N/A PSP/RSP No. LSD Sec Twp Rge W June 17, 2008 2.0 Cover Document - EFR 2

Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W PSP s held by SRD appear as DRS or PNT reservations on the LSAS report. The forest industry also has sample plots, and if these are registered, they will appear as ISP s on the LSAS report. If the forest industry sample plots are not registered, they will not appear on the LSAS report. The proponent is responsible for determining if there are any PSP s or ISP s on the land under application. PSP s and ISP s must not be disturbed. Stakeholders, Other Land Users 5. Is there potential impact on or conflict with stakeholders and other land users? Yes No If Yes to either, please list and explain mitigation: The proposed project has the potential to impact the Trapper (TPA 1509) and Canadian Forest Products Ltd. activities pine plantation (2 m spacing, 1.3 m average height). However, given the location of the proposed meter site extension to existing pipeline infrastructure and the high grade gravel road, these impacts are anticipated to be small and can be mitigated. Consultation is on-going with stakeholders and land users to ensure any conflicts are resolved prior to construction. 6. What actions have been taken to integrate this disposition with other existing/planned activities and resources to minimize the impacts on the land base? (Check appropriate boxes.) Not applicable Use common corridor Parallel existing clearing/right of way Use existing clearing/right of way Other Explain: The proposed meter site extension will be located within an old cutblock immediately adjacent to the existing meter site and the Alliance Pipeline right-of-way. June 17, 2008 2.0 Cover Document - EFR 3

7. Identify any aesthetic concerns related to the proposed activity (i.e., negative effects on the aesthetic/sensory aspects of the surrounding land including view, smell, noise, etc.). Not applicable From public access From residence From recreation facility Other Explain: Since the proposed meter site extension is located immediately adjacent to the existing meter site and existing pipelines, and given the presence of several other oil and gas and forestry dispositions within the remote project area, no aesthetic concerns are anticipated. 8. Are there any conflicts with Access Management Plans, Integrated Resource Plans or policy documents for the area? Yes No If Yes, explain mitigation strategy: N/A 9. Was First Nations (Aboriginal) consultation required by a SRD field office? Yes No If Yes, with whom: Alliance has been informed by SRD that consultation with the Horse Lake First Nation and Sturgeon Lake Cree Nation is required. Since Alliance is a federally regulated pipeline system, Alliance has also requested feedback from Aboriginal Affairs and Northern Development Canada and is currently awaiting their feedback. Alliance will undertake the required consultation and provide the consultation updates to SRD, as required. C. Wildlife/Environmental Concerns 1. Within a Key/Critical Wildlife Zone? Yes No If Yes, provide information on mitigation strategies that will be implemented: The proposed project lies within a Key Wildlife and Biodiversity Zone and Grizzly Bear Zone. The Key Wildlife and Biodiversity Zone generally has a restricted activity period between January 15 and April 30. However, given the location of the proposed meter site extension immediately east of the existing high grade gravel road (LOC 890636), vicinity to existing pipeline infrastructure and the fact that the Simonette River is on the west side of the high grade gravel road, Alliance requests a waiver from the timing restriction to complete the meter site extension under frozen conditions in February/March 2012. 2. Wildlife Timing Constraint apply? Yes No If Yes, provide dates of restricted period: From January 15 To April 30 (See Provincial Timing Guidelines or FW referral maps.) However, given the location of the proposed meter site extension immediately east of the existing high grade gravel road (LOC 890636), vicinity to existing pipeline infrastructure and the fact that the Simonette River is on the west side of the high grade gravel road, Alliance requests a waiver from the timing restriction to complete the meter site extension under frozen conditions in February/March 2012. 3. Fisheries Timing Constraint apply? Yes No If Yes, provide dates of restricted period: From N/A To N/A (See Provincial Timing Guidelines or FW referral maps.) 4. Within a Caribou Area? Yes No. If Yes, specify the Caribou Protection Plan number and name. N/A June 17, 2008 2.0 Cover Document - EFR 4

Species at Risk (Plant/Animals) 5. Is it likely that a species at risk (not including Woodland Caribou in number 4 above) will be found in the area of the proposed development? Yes No If Yes, specify the status and protective strategy for each species: Wildlife species at risk in the vicinity of the Project were identified through a search of the Fisheries and Wildlife Management Information System (FWMIS) online internet mapping tool and during the project specific survey conducted in December 2011. Details of species are listed below. A search of the Alberta Conservation Information Management System, Committee on the Status of Endangered Wildlife in Canada (COSEWIC) and Environment Canada identified no rare plants with COSEWIC or Species at Risk Act (SARA) designation in the region of this proposed project. No previously recorded occurrences of rare plants with a COSEWIC or SARA designation are known within 3 km of this proposed project. There are also no potential rare plant species listed for this area that are designated under the Alberta Wildlife Act. Species 1 Woodland Caribou Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation No woodland caribou signs were present or observed along or within the project area. The project area has been aligned to parallel existing linear corridor and existing meter station development to reduce impacts on the environment, including wildlife habitat and no site-specific mitigation has been developed. Species 3 N/A Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation N/A Species 2 Grizzly Bear Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation Grizzly bears were not observed during surveys; however, FWMIS identified previous records in the vicinity. The pipeline has been aligned to parallel an existing linear corridor and development to reduce impact on the environment, including wildlife habitat. No site-specific mitigation has been developed. Species 4 N/A Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation N/A Alberta Fish and Wildlife Division recommends predevelopment inventory be conducted on all native grasslands habitats within the Grassland Natural Region due to high concentration of Species at Risk and limited site specific information on occurrences. 6. Has a pre-development Species at Risk inventory been completed to alert the applicant of any wildlife concerns related to this project? Yes (copy of inventory attached) No If No, explain: The proposed project is not located in the Grassland Natural Region but is located within the Upper Foothills Subregion of the Foothills Natural Region. Has the activity been assessed to ensure it does not negatively affect any species at risk? Yes No If No, explain: A preconstruction assessment of the area, including assessments of vegetation and wildlife and wildlife habitat was completed by TERA Environmental Consultants in December 2011. June 17, 2008 2.0 Cover Document - EFR 5

8. If Access Restrictions apply, include legal land description and explain mitigation measures. LSD N/A Sec N/A Twp N/A Rge N/A W N/A LSD N/A Sec N/A Twp N/A Rge N/A W N/A Explain mitigation strategy: N/A 9. If within or adjacent (within 100 m) to a Protected Area, indicate the type of protected area and explain what measures will be taken to avoid conflict with the protected area. Natural Area Ecological Reserve Park Other N/A Name of protected area: N/A Explain mitigation strategy: N/A 10. Are there any environmentally sensitive areas in the vicinity (within 100 m) of the proposed activity that will require special measures to protect? Yes No If Yes, list and explain: Mountain pine beetle infested trees were identified in the vicinity of the project area. Since the proposed project is located within an existing cutblock, additional mitigation is not required. A low lying and wet area (i.e., fen) is located approximately 60 m south of the project area. In order to minimize impact, the following mitigative measures will be followed: To minimize terrain disturbance and soil structure damage, construction is to take place during frozen ground conditions; Do not use temporary workspace within these boundaries, unless required for site-specific purposes; Temporary workspace within these boundaries must be approved by Alliance; The method of removal of wetland/muskeg vegetation is subject to approval by Alliance; Prevent ground disturbance by using a protective layer such as frost packing, snow, ice or matting between wetland root/seed bed and construction equipment; Recontour the right-of-way and restore natural drainage patterns following construction; Install berms and/or cross ditches at the base of approach slopes to wetland/muskeg areas, if warranted; and Natural recovery is the preferred method of reclamation (i.e., do not seed wetland areas). 11. Is the proposed activity within a permafrost area? Yes No If Yes, specify the Permafrost Protection Plan number and name: N/A D. Historical Resources Date search completed 16/12/2011 What is the Historical Resource Value (HRV) of the affected lands? Not Listed 1 2 3 4 5 If HRV is 1-5, an Application for Historical Resources Act Clearance must be submitted to the Cultural Facilities and Historical Resource Division (CFHRD) of Alberta Community Development. Date submitted 21/12/2011. The proposed project is not located on lands with designated Historical Resource Value. However, since the project will require approval from the National Energy Board, application for Clearance under the Historical Resources Act has been submitted to Alberta Culture and Community Services. Note: Activities on land that has an HRV or 4 or 5 may require a Historical Resources Impact Assessment (HRIA). June 17, 2008 2.0 Cover Document - EFR 6

E. Vegetation and Timber Cover Vegetation (check all that apply) Native grassland Treed wetland Deciduous-dominant forest: Tame pasture Shrubby wetland ( D less than 30% coniferous trees) Cropland Grass or grass-like wetland Coniferous-dominant forest: Sparsely or non-vegetated Native aspen parkland ( C more than 70% coniferous trees) Cutblock planted Other (specify) n/a Mixedwood forest: Natural regeneration >2 m Timber Salvage 1. Merchantable timber present? Yes No Provide a volume inventory as follows: Coniferous approx. volume N/A m з or N/A number of loads Spruce N/A % Pine N/A % Other N/A % Deciduous approx. volume N/A m з or N/A number of loads Aspen N/A % Other N/A % ( CD 70% to 50% coniferous trees) ( DC 50% to 30% coniferous trees) 2. Specify the timber disposition or FMA(s) shown on LSAS. No disposition (Contact SRD field office) Disposition number of FMA: 9900037, holder name Canadian Forest Products Ltd. 3. Utilization standards: Coniferous 15 cm stump diameter to a 11 cm top diameter. Deciduous 15cm stump diameter to a 11 cm top diameter. 4. Timber salvage waiver requested? Yes No If Yes, provide justification: N/A. There is no merchantable timber present in the project footprint. The Project area is located in an approximately eight year old pine plantation. 5. Provide the name of the salvage purchaser N/A, or check one of the following: Not known at this time By TM88 (or equivalent) By Timber permit 6. When will the salvage be removed/hauled from the site to a wood processing plant? Proposed date start: N/A Proposed date complete: N/A Notes: The operator is responsible for moving the salvage to a site that is accessible to ensure all the wood can be removed. This may require forwarding the wood to a site with all-weather access. A copy of the TM88 or equivalent must be submitted to the SRD field office to ensure proper tracking of ownership, transport and manufacturing can occur. June 17, 2008 2.0 Cover Document - EFR 7

F. Soil and Vegetation Management Soil salvage, storage, replacement, and handling procedures shall be in keeping with those outlined in Section 6 Site Disturbance, Clearing and Soil Management, of the Public Lands Operational Handbook. The Handbook is available at: http://www.srd.gov.ab.ca/lands/formspublications/managingpublicland/default.aspx. Note: Projects on specific areas of public land may require a soil survey. The proponent is to identify such requirements during the planning process. Are there soil sensitivities (i.e., shallow depth to water table; shallow depth to bedrock; soils are gravely or stony, etc.)? Yes No Explain: Construction is scheduled to occur under frozen soil conditions. If wet or thawed conditions are encountered, mitigative measures will be implemented to minimize damage and compaction to the area. Surface expression (i.e., topography). Terrain is generally level to gently rolling along the eastern side the proposed project area. Site drainage (i.e., drainage is very poor, poor, imperfect, moderately well, well, rapid, or very rapid) Moderately-well to well-drained. Are there problem vegetation/weeds/invasive species on or near site at time of assessment? Yes No Explain No weeds or invasive species were observed at or near the site at the time of the assessment. However, due to the timing of the survey, this is not unexpected. Alliance will monitor the site for weeds and invasive species and will implement appropriate mitigative measures, as required. Identification of species, degree of infestation and approximate amount of area infested per species. Trace (rare) Species 1 n/a Species 2 n/a Species 3 n/a Low (occasional) Species 1 n/a Species 2 n/a Species 3 n/a Moderate (scattered plants) Species 1 n/a Species 2 n/a Species 3 n/a High (fairly dense) Species 1 n/a Species 2 n/a Species 3 n/a Is there a risk of weed spread to the site if development proceeds? High Moderate Low If any risk, provide details in reclamation and construction sections of supplements. If high or moderate, show location on the application plan. G. Incidental Activities The applicant is to identify and outline on the application plan any incidental activities required for temporary use. Note: No additional approval is required for incidental activities that are applied for with the disposition and included in the plan. If the incidental activity is not approved under the disposition, a separate approval is required. Incidental activities approved in this manner are for temporary use only and are not part of the surface disposition. 1. According to field assessment, will additional incidental clearings be required? Yes No If Yes, indicate the purpose: Campsite Borrow Pit Salvage Deck Temporary Workspace Backslope Temporary Access June 17, 2008 2.0 Cover Document - EFR 8

Other n/a 2. Are any additional clearings planned in reforested areas? Yes No If Yes, explain The project area is within an area reforested with pine (FMA 9900037 Canadian Forest Products Ltd.). The Core Operating Conditions are standard practices that must be applied to all activities. H. Core Operating Conditions Prior to Entry - Confirmation Number 099 The holder shall contact and advise the departmental officer of its intentions: prior to entry upon the lands for a stated purpose, prior to any additional construction during the term of this authority, at the completion of operations or construction, and upon abandonment of this activity. Upon contact prior to initial entry on the land, the departmental officer shall issue a confirmation number that shall be maintained on file by the holder and be provided to the departmental officer on request. <Location & Telephone No.> Valleyview, 780 524-6239 Adverse Ground Conditions 105 Any activity on the land during adverse ground conditions must be suspended if the activity is likely cause unacceptable damage to vegetation or soil, as may be determined by the holder or the department. Sample Plots 108 No entry is allowed within the boundaries of any research or sample plot. Reclamation - Interim 127 The holder shall reclaim all disturbed land surfaces within two growing seasons. Interim reclamation, including site and debris clean-up, slope stabilization, recontouring with subsoil, and spreading of topsoil shall be done progressively and concurrently with operations. Reclamation - Final 128 Final surface reclamation must meet the requirements for the specific activity in place at the time of abandonment. Noxious Weeds 131 The holder shall cut, keep down and destroy all noxious weeds and restricted weeds as per the Public Lands Act. Waste Material Disposal 135 The holder shall remove all garbage and waste material from this site to the satisfaction of the department, in it s sole discretion. Watercourse/Water Body - No Material to be Deposited 148 The holder shall not deposit or push debris, soil or other deleterious materials into or through any watercourse or water body or on the ice of any watercourse/water body. Erosion Prevention 158 The holder shall take all precautions and safeguards necessary to prevent soil and surface erosion to the satisfaction of the department in its sole discretion. June 17, 2008 2.0 Cover Document - EFR 9

Natural Drainage - No Interruption 161 The holder shall not create any interruptions to natural drainage, including ephemeral draws that may result in blockage of water flow. June 17, 2008 2.0 Cover Document - EFR 10

Environmental Field Report (EFR) 3.0 Completion of Supplement A Sites and Installations The cover document and the appropriate supplement form must be submitted for each surface disposition application. All blanks must either be filled in or N/A noted where applicable. New Revised Date Submitted: 22/12/2011 PIL Number: PIL 030396 MSL Number N/A Site/Project Name: Alliance Pipeline Ltd. Bear Creek Meter Site (PIL 030396) Extension Legal land description: LSD 2 Sec 13 Twp 63 Rge 1 W6M A. Site Description 1. Stability concerns: Yes No If Yes, explain mitigation: n/a Questions 2, 3, 4 and 5 of section A apply to MSL only. The Wellsite Spacing Recommendations may be used as a guide http://srd.alberta.ca/lands/formspublications/usingpublicland/default.aspx. 2. Well type: Oil Sweet Gas Sour Gas (H 2 S) Coalbed Methane Single Well pad Multi-well pad Other n/a 3. Well depth: n/a m 4. Flare requirements for drilling: 50 m 35 m 25 m Flare pit Flare tank Flare stack 5. Number of zones to be completed/produced n/a Inter-well spacing n/a m. B. Vehicle/Equipment Access How will the site be accessed? (Check boxes that apply) By an existing access held under disposition or jurisdiction (specify name, disposition number, and owner): Access to the site will be via the existing Canfor high grade gravel road (LOC 890636) and along the existing Alliance pipeline right-of-way (PLA 981026) and existing Alliance Meter Site (PIL 030396). New application (LOC) New access included in this application. Note: If access is part of the site and installation application, an access supplement must be submitted. June 2008 3.0 Supplement A Sites & Installations 1

C. Contamination Prevention 1. Is the boundary of the site located within 100 m of a watercourse? Yes No If Yes, specify distance from edge of lease to top of breaks in meters n/a Explain mitigation strategy if within 100 meters n/a 2. Will the site be diked during drilling? Yes No During production? Yes No If No, explain why not. n/a Will other methods of on-site contamination prevention be required? Explain No. This PIL Amendment request is to extent the existing meter site by an additional 40 m by 40 m to install additional metering facilities. Applicable to MSL only D. Sump Type of sump (check appropriate box): On-site pit Above-ground tank on site In-ground tank on site Remote sump Remote sump location: LSD n/a Sec n/a Twp n/a Rge n/a W n/a Private land Public land (if location known, indicate on the survey plan) GPS coordinates: (deg/min/decimal) NAD83 Latitude n/a Longitude n/a Proposed mud type: Hydrocarbon: n/a Salt base: n/a Gel chem: n/a Other: n/a Applicable to MSL only Disposal Estimate volumes to be disposed of: Solids n/a m 3 Liquids n/a m 3 Proposed disposal method: Mix/bury/cover Land spreading Land farming Pump-off Disposal on forested public land Other n/a Approximate date of disposal n/a Private Land Public Land Indicate land farming or land spreading location if off site on public land. LSD n/a Sec n/a Twp n/a Rge n/a W n/a Applicable to MSL only E. Source of Water 1. Water Required: Yes No Water well on lease 2. Offsite source: Offsite water well Lake Stream River June 2008 3.0 Supplement A Sites & Installations 2

Other (specify type) n/a Location: LSD n/a Sec n/a Twp n/a Rge n/a W n/a 3. Access required to water source? Yes No If Yes attach a sketch. F. Construction Strategy 1. Vegetation Removal Explain: Nonmerchantable timber will be cleared with a bulldozer, hydro-axe, mulcher or other approved equipment. 2. Brush Disposal Explain: Alliance will burn, mulch or dispose of slash unless needed for corduroy or rollback. Alliance will obtain permission to burn from Alberta Sustainable Resource Development s (ASRD's) Forestry Division. Burning will be conducted following the Forest Protection Regulations (Alberta Reg. 310/72). If timber and brush are disposed of by mechanical means (i.e., mulching), the activities will be carried out in accordance with ASRD Industry Directive Number: ID 2009-01 (Management of Wood Chips on Public Land). 3. Topsoil handling: (Check appropriate boxes) No stripping Minimum surface disturbance Stripping Single Lift Two Lift Other (Explain) Additional details: Alliance will salvage strippings (approximately 50% organic material and 50% upper surface soil) from the meter site area. 4. Will padding of the wellsite be required? Yes No If Yes Explain: n/a G. Reclamation Strategy Revegetation strategy: (Check appropriate boxes) Natural Recovery Native Seed Non-native Seed Other Interim: Clean-up will commence immediately following construction. The meter site will be monitored for weed and erosion concerns. Mitigative measures will be implemented as required should any concerns arise. Production/Operation: The meter site will be fenced and gravelled. Alliance will monitor the site for weeds and control as warranted. The site will also be monitored for other environmental concerns for the life of the facility and remedial measures will be employed, where warranted. Applicable to MSL only See Appendix III - Lease Description and Wellsite Sizing Information Note: Complete and attach the lease description and wellsite sizing template (in the Appendix) if a non-standard wellsite is required as per the lease description and wellsite sizing document (see instructions). Operating Condition June 2008 3.0 Supplement A Sites & Installations 3

Contamination Prevention 136 In addition to complying with Federal, provincial and local laws and regulations respecting the environment, including release of substances, the holder shall, to the department s satisfaction, take necessary precautions to prevent contamination of land, water bodies and the air with particulate and gaseous matter, which, in the opinion of the department in its sole discretion, is or may be harmful. June 2008 3.0 Supplement A Sites & Installations 4

Environmental Field Report (EFR) 2.0 Completion of EFR Cover Document For all Dispositions The cover document and the appropriate supplement form must be submitted for each surface disposition application. All blanks must either be filled in or N/A noted where applicable. New Revised Date Submitted 22/12/2011 Department Number PLA 034339 Site/Project Name: Alliance Pipeline Ltd. Bear Creek Meter Site Extension A. Communications 1. Applicant: Alliance Pipeline Ltd. 2. Company contact person for EFR: Kari Baker, Environmental Advisor Phone: (403) 517-6361 3. E-mail: Kari.Baker@alliancepipeline.com Cell Phone: (403) 510-5643 4. Company representative who conducted the onsite assessment for the EFR: Samantha MacKay and Daniel Jones, TERA Environmental Consultants 5. Phone: (403) 265-2885 Cell Phone: (n/a) n/a 6. Fax: (403) 266-6471 E-mail: smackay@teraenv.com / djones@teraenv.com 7. Date of on-site assessment: 14/12/2001 Note: SRD reserves the option to audit individual EFR s to ensure field visits have been conducted and information supplied is accurate. B. Surface Location LSD SE Sec 13 Twp 63 Rge 1 W6M To: LSD SE Sec 13 Twp 63 Rge 1 W6M 1. Construction is proposed under the following soil conditions (check the box that applies): Frozen Non-Frozen Other (If Other, explain) Alliance Pipeline Ltd. (Alliance) is proposing extend their existing meter site in SE 13-63-1 W6M (Pipeline Installation Lease [PIL] 030396) to accommodate installation of additional meter facilities. Installation of the new meter site will also require extension of the existing right-of-way (PLA034339) to accommodate product transfer. Pending regulatory approval, construction of the new pipeline will be conducted in early (February/March) 2012 under frozen soil conditions. Proposed construction date: 01/02/2012 June 17, 2008 2.0 Cover Document - EFR 1

2. Specify associated developments/dispositions that may be required as a result of this disposition. Power line Pipeline Compressor Metering Station Access Other N/A Extension of the existing right-of-way is being conducted to accommodate extension of the existing Bear Creek Meter Site (PIL 030396). Application for extension of the existing meter site (PIL 030396) will be submitted as a separate amendment. LSAS Review 3. A complete Land Status Automated System (LSAS) check must be made on the proposed area. Date LSAS search was completed: 13/12/2011 Reservation/Activity Number FMA 9900037 TPA 1509 Action required/identify conflicts/contact name and or comments Canadian Forest Products Ltd. Alliance will ensure there are no conflicts with the proposed project. Alfred Goodswimmer Alliance will provide the trapper with notification of the proposed project a. Within a Provincial Grazing Reserve? Yes No If Yes, complete the Provincial Grazing Reserve template and attach to the Environmental Field Report. (Refer to Appendix I in the instruction document.) b. Within the Chungo Access Management Area? Yes No If Yes, complete the Chungo Area template (located at the end of IL 2005-01 Annex to Chungo Creek Industrial Access Management Area Information Letter Alberta SRD - Lands - Forms and Publications - Managing Public Lands) and attach it to the Environmental Field Report. c. Within a FireSmart Community Zone? Yes No If Yes, contact Forest Protection Division for additional hazard reduction requirements. Alberta SRD - Wildfires - FireSmart - Information & Projects d. Follow the Bear Smart program to reduce bear-human conflicts and increase public stewardship of black and grizzly bears in Alberta by providing strategies, information and education materials to its staff and contractors. 4. Are Permanent/Research Sample Plots/Rangeland Benchmarks located within 100 m of the boundary of the lands under application? Yes No If Yes, indicate the legal land description and GPS coordinates for each plot/benchmark in relation to the disposition boundary (degree, decimal, minutes). Reservation No. N/A PSP/RSP No. LSD Sec Twp Rge W June 17, 2008 2.0 Cover Document - EFR 2

Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W Reservation No. PSP/RSP No. LSD Sec Twp Rge W PSP s held by SRD appear as DRS or PNT reservations on the LSAS report. The forest industry also has sample plots, and if these are registered, they will appear as ISP s on the LSAS report. If the forest industry sample plots are not registered, they will not appear on the LSAS report. The proponent is responsible for determining if there are any PSP s or ISP s on the land under application. PSP s and ISP s must not be disturbed. Stakeholders, Other Land Users 5. Is there potential impact on or conflict with stakeholders and other land users? Yes No If Yes to either, please list and explain mitigation: The proposed project has the potential to impact the Trapper (TPA 1509) and existing Canadian Forest Products Ltd (FMA 9900037) pine plantation (2 m spacing, 1.3 m height average). However, given the location of the proposed meter site extension to existing pipeline infrastructure and the high grade gravel road, these impacts are anticipated to be small and can be mitigated. Consultation is on-going with stakeholders and land users to ensure any conflicts are resolved prior to construction. 6. What actions have been taken to integrate this disposition with other existing/planned activities and resources to minimize the impacts on the land base? (Check appropriate boxes.) Not applicable Use common corridor Parallel existing clearing/right of way Use existing clearing/right of way Other Explain: The proposed right-of-way extension will be located within an old clearing immediately adjacent to the Alliance Pipeline right-of-way. 7. Identify any aesthetic concerns related to the proposed activity (i.e., negative effects on the aesthetic/sensory aspects of the surrounding land including view, smell, noise, etc.). June 17, 2008 2.0 Cover Document - EFR 3

Not applicable From public access From residence From recreation facility Other Explain: Since the proposed right-of-way extension is located immediately adjacent to the existing pipelines, and given the presence of several other oil and gas and forestry dispositions within the remote project area, no aesthetic concerns are anticipated. 8. Are there any conflicts with Access Management Plans, Integrated Resource Plans or policy documents for the area? Yes No If Yes, explain mitigation strategy: N/A 9. Was First Nations (Aboriginal) consultation required by a SRD field office? Yes No If Yes, with whom: Alliance has been informed by SRD that consultation with the Horse Lake First Nation and Sturgeon Lake Cree Nation is required. Since Alliance is a federally regulated pipeline system, Alliance has also requested feedback from Aboriginal Affairs and Northern Development Canada and is currently awaiting their feedback. Alliance will undertake the required consultation and provide the consultation updates to SRD, as required. C. Wildlife/Environmental Concerns 1. Within a Key/Critical Wildlife Zone? Yes No If Yes, provide information on mitigation strategies that will be implemented: The proposed project lies within a Key Wildlife and Biodiversity Zone and Grizzly Bear Zone. The Key Wildlife and Biodiversity Zone generally has a restricted activity period between January 15 and April 30. However, given the location of the proposed right-of-way extension east of the existing high grade gravel road (LOC 890636), vicinity to existing pipeline infrastructure and the fact that the Simonette River is on the west side of the high grade gravel road, Alliance requests a waiver from the timing restriction to complete the right-of-way extension under frozen conditions in February/March 2012. 2. Wildlife Timing Constraint apply? Yes No If Yes, provide dates of restricted period: From January 15 To April 30 (See Provincial Timing Guidelines or FW referral maps.) However, given the location of the proposed right-of-way extension immediately east of the existing high grade gravel road (LOC 890636), vicinity to existing pipeline infrastructure and the fact that the Simonette River is on the west side of the high grade gravel road, Alliance requests a waiver from the timing restriction to complete the right-of-way extension under frozen conditions in February/March 2012. 3. Fisheries Timing Constraint apply? Yes No If Yes, provide dates of restricted period: From N/A To N/A (See Provincial Timing Guidelines or FW referral maps.) 4. Within a Caribou Area? Yes No. If Yes, specify the Caribou Protection Plan number and name. N/A June 17, 2008 2.0 Cover Document - EFR 4

Species at Risk (Plant/Animals) 5. Is it likely that a species at risk (not including Woodland Caribou in number 4 above) will be found in the area of the proposed development? Yes No If Yes, specify the status and protective strategy for each species: Wildlife species at risk in the vicinity of the Project were identified through a search of the Fisheries and Wildlife Management Information System (FWMIS) online internet mapping tool and during the project specific survey conducted in December 2011. Details of species are listed below. A search of the Alberta Conservation Information Management System, Committee on the Status of Endangered Wildlife in Canada (COSEWIC) and Environment Canada identified no rare plants with COSEWIC or Species at Risk Act (SARA) designation in the region of this proposed project. No previously recorded occurrences of rare plants with a COSEWIC or SARA designation are known within 3 km of this proposed project. There are also no potential rare plant species listed for this area that are designated under the Alberta Wildlife Act. Species 1 Woodland Caribou Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation No woodland caribou signs were present or observed along or within the project area. The project area has been aligned to parallel existing linear corridor and existing meter station development to reduce impacts on the environment, including wildlife habitat and no site-specific mitigation has been developed. Species 3 N/A Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation N/A Species 2 Grizzly Bear Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation Grizzly bears were not observed during surveys; however, FWMIS identified previous records in the vicinity. The pipeline has been aligned to parallel an existing linear corridor and development to reduce impact on the environment, including wildlife habitat. No site-specific mitigation has been developed. Species 4 N/A Endangered Threatened Special Concern At Risk May Be At Risk Explain any conflict and proposed mitigation N/A Alberta Fish and Wildlife Division recommends predevelopment inventory be conducted on all native grasslands habitats within the Grassland Natural Region due to high concentration of Species at Risk and limited site specific information on occurrences. 6. Has a pre-development Species at Risk inventory been completed to alert the applicant of any wildlife concerns related to this project? Yes (copy of inventory attached) No If No, explain: The proposed project is mot located within the Grasslands National Region but is located within the Upper Foothills Subregion of the Foothills Natural Region. Has the activity been assessed to ensure it does not negatively affect any species at risk? Yes No If No, explain: A preconstruction assessment of the area, including assessment of vegetation, wildlife and wildlife habitat, was completed by TERA Environmental Consultants in December 2011. June 17, 2008 2.0 Cover Document - EFR 5

8. If Access Restrictions apply, include legal land description and explain mitigation measures. LSD N/A Sec N/A Twp N/A Rge N/A W N/A LSD N/A Sec N/A Twp N/A Rge N/A W N/A Explain mitigation strategy: N/A 9. If within or adjacent (within 100 m) to a Protected Area, indicate the type of protected area and explain what measures will be taken to avoid conflict with the protected area. Natural Area Ecological Reserve Park Other N/A Name of protected area: N/A Explain mitigation strategy: N/A 10. Are there any environmentally sensitive areas in the vicinity (within 100 m) of the proposed activity that will require special measures to protect? Yes No If Yes, list and explain: Mountain pine beetle infested trees were identified in the vicinity of the project area. Since the proposed project is located within an existing cutblock, additional mitigation is not required. A low lying and wet area (i.e., fen) is located approximately 60 m south of the project area. In order to minimize impact, the following mitigative measures will be followed: To minimize terrain disturbance and soil structure damage, construction is to take place during frozen ground conditions; Do not use temporary workspace within these boundaries, unless required for site-specific purposes; Temporary workspace within these boundaries must be approved by Alliance; The method of removal of wetland/muskeg vegetation is subject to approval by Alliance; Prevent ground disturbance by using a protective layer such as frost packing, snow, ice or matting between wetland root/seed bed and construction equipment; Recontour the right-of-way and restore natural drainage patterns following construction; Install berms and/or cross ditches at the base of approach slopes to wetland/muskeg areas, if warranted; and Natural recovery is the preferred method of reclamation (i.e., do not seed wetland areas). 11. Is the proposed activity within a permafrost area? Yes No If Yes, specify the Permafrost Protection Plan number and name: N/A D. Historical Resources Date search completed 16/12/2011 What is the Historical Resource Value (HRV) of the affected lands? Not Listed 1 2 3 4 5 If HRV is 1-5, an Application for Historical Resources Act Clearance must be submitted to the Cultural Facilities and Historical Resource Division (CFHRD) of Alberta Community Development. Date submitted 21/12/2011. The proposed project is not located on lands with designated Historical Resource Value. However, since the project will require approval from the National Energy Board, application for Clearance under the Historical Resources Act has been submitted to Alberta Culture and Community Services. Note: Activities on land that has an HRV or 4 or 5 may require a Historical Resources Impact Assessment (HRIA). June 17, 2008 2.0 Cover Document - EFR 6

E. Vegetation and Timber Cover Vegetation (check all that apply) Native grassland Treed wetland Deciduous-dominant forest: Tame pasture Shrubby wetland ( D less than 30% coniferous trees) Cropland Grass or grass-like wetland Coniferous-dominant forest: Sparsely or non-vegetated Native aspen parkland ( C more than 70% coniferous trees) Cutblock planted Other (specify) n/a Mixedwood forest: Natural regeneration >2 m Timber Salvage 1. Merchantable timber present? Yes No Provide a volume inventory as follows: Coniferous approx. volume N/A m з or N/A number of loads Spruce N/A % Pine N/A % Other N/A % Deciduous approx. volume N/A m з or N/A number of loads Aspen N/A % Other N/A % ( CD 70% to 50% coniferous trees) ( DC 50% to 30% coniferous trees) 2. Specify the timber disposition or FMA(s) shown on LSAS. No disposition (Contact SRD field office) Disposition number of FMA: 9900037, holder name Canadian Forest Products Ltd. 3. Utilization standards: Coniferous 15 cm stump diameter to a 11 cm top diameter. Deciduous 15 cm stump diameter to a 10 cm top diameter. 4. Timber salvage waiver requested? Yes No If Yes, provide justification: N/A. There is no merchantable timber present in the project footprint. The Project area is located in an approximately eight year old pine plantation. 5. Provide the name of the salvage purchaser N/A, or check one of the following: Not known at this time By TM88 (or equivalent) By Timber permit 6. When will the salvage be removed/hauled from the site to a wood processing plant? Proposed date start: N/A Proposed date complete: N/A Notes: The operator is responsible for moving the salvage to a site that is accessible to ensure all the wood can be removed. This may require forwarding the wood to a site with all-weather access. A copy of the TM88 or equivalent must be submitted to the SRD field office to ensure proper tracking of ownership, transport and manufacturing can occur. June 17, 2008 2.0 Cover Document - EFR 7

F. Soil and Vegetation Management Soil salvage, storage, replacement, and handling procedures shall be in keeping with those outlined in Section 6 Site Disturbance, Clearing and Soil Management, of the Public Lands Operational Handbook. The Handbook is available at: http://www.srd.gov.ab.ca/lands/formspublications/managingpublicland/default.aspx. Note: Projects on specific areas of public land may require a soil survey. The proponent is to identify such requirements during the planning process. Are there soil sensitivities (i.e., shallow depth to water table; shallow depth to bedrock; soils are gravely or stony, etc.)? Yes No Explain: Construction is scheduled to occur under frozen soil conditions. If wet or thawed conditions are encountered, mitigative measures will be implemented to minimize damage and compaction to the area. Surface expression (i.e., topography). Terrain is generally level to gently rolling along the eastern side the proposed project area. Site drainage (i.e., drainage is very poor, poor, imperfect, moderately well, well, rapid, or very rapid) Moderately-well to well-drained. Are there problem vegetation/weeds/invasive species on or near site at time of assessment? Yes No Explain No weeds or invasive species were observed at or near the site at the time of the assessment. However, due to the timing of the survey, this is not unexpected. Alliance will monitor the site for weeds and invasive species and will implement appropriate mitigative measures, as required. Identification of species, degree of infestation and approximate amount of area infested per species. Trace (rare) Species 1 n/a Species 2 n/a Species 3 n/a Low (occasional) Species 1 n/a Species 2 n/a Species 3 n/a Moderate (scattered plants) Species 1 n/a Species 2 n/a Species 3 n/a High (fairly dense) Species 1 n/a Species 2 n/a Species 3 n/a Is there a risk of weed spread to the site if development proceeds? High Moderate Low If any risk, provide details in reclamation and construction sections of supplements. If high or moderate, show location on the application plan. G. Incidental Activities The applicant is to identify and outline on the application plan any incidental activities required for temporary use. Note: No additional approval is required for incidental activities that are applied for with the disposition and included in the plan. If the incidental activity is not approved under the disposition, a separate approval is required. Incidental activities approved in this manner are for temporary use only and are not part of the surface disposition. 1. According to field assessment, will additional incidental clearings be required? Yes No If Yes, indicate the purpose: Campsite Borrow Pit Salvage Deck June 17, 2008 2.0 Cover Document - EFR 8

Temporary Workspace Backslope Temporary Access Other n/a 2. Are any additional clearings planned in reforested areas? Yes No If Yes, explain The project area is within an area reforested with pine (FMA 9900037 Canadian Forest Products Ltd.). June 17, 2008 2.0 Cover Document - EFR 9

The Core Operating Conditions are standard practices that must be applied to all activities. H. Core Operating Conditions Prior to Entry - Confirmation Number 099 The holder shall contact and advise the departmental officer of its intentions: prior to entry upon the lands for a stated purpose, prior to any additional construction during the term of this authority, at the completion of operations or construction, and upon abandonment of this activity. Upon contact prior to initial entry on the land, the departmental officer shall issue a confirmation number that shall be maintained on file by the holder and be provided to the departmental officer on request. <Location & Telephone No.> Valleyview, 780 524-6239 Adverse Ground Conditions 105 Any activity on the land during adverse ground conditions must be suspended if the activity is likely cause unacceptable damage to vegetation or soil, as may be determined by the holder or the department. Sample Plots 108 No entry is allowed within the boundaries of any research or sample plot. Reclamation - Interim 127 The holder shall reclaim all disturbed land surfaces within two growing seasons. Interim reclamation, including site and debris clean-up, slope stabilization, recontouring with subsoil, and spreading of topsoil shall be done progressively and concurrently with operations. Reclamation - Final 128 Final surface reclamation must meet the requirements for the specific activity in place at the time of abandonment. Noxious Weeds 131 The holder shall cut, keep down and destroy all noxious weeds and restricted weeds as per the Public Lands Act. Waste Material Disposal 135 The holder shall remove all garbage and waste material from this site to the satisfaction of the department, in it s sole discretion. Watercourse/Water Body - No Material to be Deposited 148 The holder shall not deposit or push debris, soil or other deleterious materials into or through any watercourse or water body or on the ice of any watercourse/water body. Erosion Prevention 158 The holder shall take all precautions and safeguards necessary to prevent soil and surface erosion to the satisfaction of the department in its sole discretion. Natural Drainage - No Interruption 161 The holder shall not create any interruptions to natural drainage, including ephemeral draws that may result in blockage of water flow. June 17, 2008 2.0 Cover Document - EFR 10